Inheritance Tax

France imposes a succession tax on residents’ worldwide assets, which is paid at a progressive rate by each beneficiary. The tax rates and allowances vary according to their relationship to you and can be prohibitive for non-relatives. Spouses are exempt on inheritances.

Spain charges succession and gift tax on Spanish assets or assets passing to Spanish residents. Close family members receive higher allowances than other heirs. The state tax rates and allowances can be adjusted by the autonomous region, and many have moved to virtually eliminate tax between spouses, descendants and ascendants. Tax can apply between spouses depending on the region.

Portugal and Malta charge a ‘stamp duty’ instead of inheritance tax. Portuguese stamp duty is fixed at 10%, only applies to local assets, and spouses and descendants are exempt. Malta only charges tax when an indirect relative inherits property.

In Monaco, inheritance tax only applies to assets located within the Principality, Cyprus does not impose any inheritance or gift tax.

Many countries, including the UK, France and Spain, charge a tax on gifts given within your lifetime, although there may be some exemptions or time-based relief. In the UK, for example, if you survive for at least seven years from the date of a gift to an individual, it may fall out of account for tax purposes.

Blevins Franks is highly specialised at advising expatriates on how to legitimately avoid or limit inheritance taxes – something we’ve been doing for 50 years.

We will guide you through the new UK long-term residence rules to clarify how long your liability to UK inheritance tax on worldwide assets will last and how this UK tax interacts with the inheritance tax in your country of residence.

We are also highly knowledgeable on each country’s succession law and forced heirship rules and provide a comprehensive, integrated estate planning review service.